Do Debit Transactions Come out of Checking or Savings?

by Forest Time

Debit cards allow holders to quickly pay for goods and services using money held in bank accounts. Normally, debit transactions come from money that a cardholder has stored in his checking account. However, there are some cases in which debit cards tap into money in a cardholder's savings account.

ATM Withdrawals

When a cardholder uses a debit card to withdraw cash from an ATM, he normally has a choice whether to pull that money from his checking account or from his savings account.

Overdraft Coverage

Some banks allow a cardholder to link his savings account to his checking account in case of an overdraft. When a cardholder accidentally overdraws his checking account when making a debit card purchase, money can be drawn from his savings account to pay the difference.